A cup of coffee is ______________ than dinner out at a fancy restaurant because _________________.
A)less price elastic;it is a smaller portion of one's income
B)more price elastic;it is a smaller portion of one's income
C)less price elastic;it is more of a luxury good
D)more price elastic;it is more of a luxury good

Question

Quizplus · Accepted Answer

A cup of coffee is typically a smaller portion of one's income compared to dinner out at a fancy restaurant, which means that the demand for coffee is less sensitive to changes in price. Therefore, coffee is less price elastic compared to a fancy restaurant dinner, which is more price elastic.

A Cup of Coffee Is ______________ Than Dinner Out at a Fancy